Page 25 - Annual Report 2016

FINANCIAL ANALYSIS

It is with great pleasure that I provide the acquisition costs relating to due diligence reports has
following analysis of the financial position of reduced this period’s surplus.
the Association to the members. There will also be noticeable differences to the Balance
Sheet as the use of cash to fund the acquisition
The 2016 financial report will note some extensive transferred some of our assets from current to non-
changes from the previous period, due to, for the most current; and the addition of both current and non-current
part the acquisition of the Premier and City Touch liabilities associated with the debt facility provided by
competitions. The acquisition was funded through both Touch Football Australia are also now a feature.
capital and debt and is the most significant investment
the Association has made. The longer term benefits to the financial health of this
organisation are many; increases in revenue will take
The impact of this investment will see a short to mid-term pressure off other high risk areas and the returns
impact to the Income and Expenditure Statement through generated by the competitions will allow for further
the amortisation of intangible assets, and the one-off investment to be made into the sport.

1. Members Equity
2016 saw another surplus leading to growth in Members • The inventory which has remained on the balance sheet
Equity to $750,255. The consistent growth over the past for a length of time has been written off and allocated
four periods provides a high degree of confidence for the across both merchandise and course expenses on the
organisation; however, the growth has slowed somewhat over income and expenditure statement. This has a negative
2015 and 2016. effect on the surplus by $21,241.
The surplus for 2016 has been impacted by a number of • The amortisation of the intangible assets from the
accounting factors that are noteworthy. acquisition will take place over a period of five years and
will impact the income and expenditure statement for
• The acquisition of Premier and City Touch featured that period. The effect on 2016 was $11,090.
one-off fees for legal and financial due diligence reports
which has impacted the net result by $42,000.

Members Equity

Figure 1 - Members Equity

2 0 1 6 A N N U A L R E P O RT 23